Monday, June 27, 2016

S&P Cuts UK Rating To 'AA' From 'AAA'

CNBC: Brexit fears drive downgrade: S&P cuts UK rating to 'AA' from 'AAA'

Standard & Poor's announced Monday that it has lowered the United Kingdom's sovereign credit rating from "AAA" to "AA."

S&P cited last week's U.K. referendum to leave the European Union in its explanation of the rating decline.

"In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. We have reassessed our view of the U.K.'s institutional assessment and now no longer consider it a strength in our assessment of the rating," the ratings agency said in a news release.

S&P also expressed some concern that wide-margin votes to remain within the EU from Scotland and Northern Ireland create "wider constitutional issues for the country as a whole."

Read more ....

Update #1: S&P cuts UK's credit rating by two notches after Brexit (Reuters)
Update #2: U.K. stripped of its AAA rating (USA Today)
Update #3: S&P Downgrades UK From AAA To AA Due To Brexit: Full Text (Zero Hedge)

WNU Editor: This S&P announcement should surprise no-one .... and for those who hold bank/financial stocks, the collapse in their value has now even surpassed what happened when Lehman Brothers went bankrupt in 2008 .... European Banks Crash To Worst 2-Day Loss Ever As Default Risk Soars (Zero Hedge).

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